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    Cfas Chapter 25

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    Kristel Fields
    The document contains journal entries for income tax expenses and payments for ABC Company, Zeus Company, and Colombo Company for years 2020 and 2021. ABC Company recorded a current tax expense of $450,000 and deferred tax liability of $150,000 for 2020. Zeus Company recorded a current tax expense of $1,200,000 and a deferred tax asset of $300,000 for 2020. Colombo Company recorded a current tax expense of $1,500,000 and deferred tax liability of $150,000 for 2020.

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    Cfas Chapter 25

    Uploaded by

    Kristel Fields
    61 views6 pages
    The document contains journal entries for income tax expenses and payments for ABC Company, Zeus Company, and Colombo Company for years 2020 and 2021. ABC Company recorded a current tax expense of $450,000 and deferred tax liability of $150,000 for 2020. Zeus Company recorded a current tax expense of $1,200,000 and a deferred tax asset of $300,000 for 2020. Colombo Company recorded a current tax expense of $1,500,000 and deferred tax liability of $150,000 for 2020.

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    The document contains journal entries for income tax expenses and payments for ABC Company, Zeus Company, and Colombo Company for years 2020 and 2021. ABC Company recorded a current tax expense of $450,000 and deferred tax liability of $150,000 for 2020. Zeus Company recorded a current tax expense of $1,200,000 and a deferred tax asset of $300,000 for 2020. Colombo Company recorded a current tax expense of $1,500,000 and deferred tax liability of $150,000 for 2020.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
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    61 views6 pages

    Cfas Chapter 25

    Uploaded by

    Kristel Fields
    The document contains journal entries for income tax expenses and payments for ABC Company, Zeus Company, and Colombo Company for years 2020 and 2021. ABC Company recorded a current tax expense of $450,000 and deferred tax liability of $150,000 for 2020. Zeus Company recorded a current tax expense of $1,200,000 and a deferred tax asset of $300,000 for 2020. Colombo Company recorded a current tax expense of $1,500,000 and deferred tax liability of $150,000 for 2020.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
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    of 6

    ABC Company

    Journal Entries
    Date Account Titles and Explanation PR Debit Credit
    Dec 31 Income tax expense 450,000
    Income tax payable (1,500,000 x 30%) 450,000
    To record the current tax expense

    Dec 31 Income tax expense 150,000


    Deferred tax liability (500,000 x 30%) 150,000
    To record the deferred tax liability

    Dec 31 Income tax payable 200,000


    Cash 200,000
    To record the estimated tax payment

    Current Tax Expense 450,000


    Deferred Tax Expense 150,000
    Total Income Tax Expense 600,000
    Zeus Company
    Journal Entries
    Date Account Titles and Explanation PR Debit Credit
    Dec 31 Income tax expense 1,200,000
    Income tax payable (4,000,000 x 30%) 1,200,000
    To record the current tax expense

    Dec 31 Deferred tax asset (1,000,000x30%) 300,000


    Income tax benefit 300,000
    To record the deferred tax asset

    Dec 31 Income tax payable 500,000


    Cash 500,000
    To record the estimated tax payment

    Current Tax Expense 1,200,000


    Income Tax Benefit -300,000
    Total Income Tax Expense 900,000
    Zeus Company Income tax statement
    Journal Entries
    Date-2020 Account Titles and Explanation PR Debit Credit Income before tax
    Dec 31 Income tax expense 2,100,000 Income tax Expense
    Income tax payable (7,000,000 x 30%) 2,100,000
    To record the current tax expense
    Net income
    Dec 31 Deferred tax asset (1,000,000x30%) 300,000
    Income tax benefit 300,000
    To record the deferred tax asset

    Date-2021 Account Titles and Explanation PR Debit Credit Income tax statement
    Dec 31 Income tax expense 2,400,000
    Income tax payable (8,000,000 x 30%) 2,400,000 Income before tax
    To record the current tax expense Income tax Expense

    Dec 31 Income tax expense 300,000


    Deferred tax asset (1,000,000x30%) 300,000 Net income
    To record the deferred tax asset
    Income tax statement presentation for 2020

    Income before tax 6,000,000


    Income tax Expense
    Current Tax Expense 2,100,000
    Income tax benefit -300,000 1,800,000
    Net income 4,200,000

    Income tax statement presentation for 2021

    Income before tax 9,000,000


    Income tax Expense
    Current Tax Expense 2,400,000
    Income tax benefit 300,000 2,700,000
    Net income 6,300,000
    Colombo Company
    Journal Entries Income tax statemen
    Date 2020 Account Titles and Explanation PR Debit Credit
    Dec 31 Income tax expense 1,500,000 Income before tax
    Income tax payable (5,000,000 x 30%) 1,500,000 Income tax Expense
    To record the current tax expense

    Dec 31 Income tax expense 150,000 Net income


    Deferred tax liability (500,000 x 30%) 150,000
    To record the deferred tax liability

    Date 2021 Account Titles and Explanation PR Debit Credit Income tax statemen
    Dec 31 Income tax expense 2,250,000
    Income tax payable (7,500,000 x 30%) 2,250,000 Income before tax
    To record the current tax expense Income tax Expense

    Dec 31 Deferred tax liability 150,000


    Income tax expense 150,000 Net income
    To record the deferred tax liability
    Income tax statement presentation for 2020

    Income before tax 5,500,000


    Income tax Expense
    Current Tax Expense 1,500,000
    Deferred tax expense 150,000 1,650,000
    Net income 3,850,000

    Income tax statement presentation for 2021

    Income before tax 7,000,000


    Income tax Expense
    Current Tax Expense 2,250,000
    Decrease in deferred tax liability -150,000 2,100,000
    Net income 4,900,000

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